Morgan Stanley has expressed concerns over Apple's (AAPL, Financial) progress in artificial intelligence (AI) following the WWDC 2025 event, noting a lack of significant breakthroughs. The investment firm suggests that Apple's AI advancements may take longer than anticipated. Although Apple introduced "Apple Intelligence" features, enhancements were limited, with only 20% of iPhones currently supporting the new AI capabilities. The collaboration with Google's Gemini and approval for Apple Intelligence in China are still pending.
Despite these challenges, Morgan Stanley maintains an "overweight" rating for Apple with a target price of $235, citing Apple's robust ecosystem, user base, and privacy standards as key factors for future success. Apple’s stock was steady at $201, indicating a potential 16% upside to the target price.
At WWDC 2025, Apple unveiled several new Apple Intelligence features, including broader language support and integration with ChatGPT. However, the more personalized Siri is not expected until the next year. The event did not announce new Gemini partnerships or approval in China, which Morgan Stanley views as crucial for Apple's AI strategy.
Additionally, Apple's introduction of a "liquid glass" design aims to unify the user experience across devices, enhancing transparency and light effects. Meanwhile, the iPad is evolving into a genuine PC alternative, with significant improvements over the past two years.
